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TABLE OF CONTENT
1. INTRODUCTION OF INSURANCE -CHAPTER 1 PAGE NO
1.1Insurance industry in India………………………………………………...8
1.2 Historical Perspective…………………………………………………........9
1.3 Insurance Regulatory and Development Authority……………………….10
1.4 Present Scenario-Life Insurance in India………………………………….11-13
2. RESEARCH DESIGN-CHAPTER 2
2.1 Introduction................................................................................................15
2.2 Title of Study……………………………………………………….........15
2.3 Statement of the problem……………………………………………........15
2.4 Objective of Study………………………………………………….........16
2.5 Research methodology……………………………………………….......16-18
3. COMPANY PROFILE OF HDFC LIFE INSURANCE-CHAPTER 3
3.1 Introduction……………………………………………………………….20-24
3.2 Joint Venture…………………………………………………………........25
3.3 Business Growth…………………………………………………………..25-26
3.4 Key Strength……………………………………………………………….26
3.5 Corporate objective………………………………………………………...27
3.6 Analysis of financial performance…………………………………………28-30
3.7 Ratio Analysis……………………………………………………………...30-46
4. ORGANISATIONAL STRUCTURE OF HDFCSTANDARD LIFE-CHAPTER 4
4.1 Functional department of organization…………………………………….48
4.2Organizational chart………………………..................................................48-49
4.3 Workflow…………………………………………………………………..50
5. DETAILED ANALYSIS OF PRODUCTS OF HDFC STANDARD LIFE-
CHAPTER 5
5.1 Protection Plan……………………………………………………………..52-55
5.2 Childrens Plan……………………………………………………………...55-58
5.3 Retirement Plan…………………………………………………………….58-62
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5.4 Savings and Investment Plan……………………………………………....62-70
5.5 Health Plan…………………………………………………………………70-72
5.6 Group Products…………………………………………………………….72-74
6. COMPANY PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE-CHAPTER 6
6.1 Introduction…………………………………………………………………76-79
7.COMPARATIVE ANALYSIS OF HDFC & ICICI-CHAPTER 7
7.1 Comparison of HDFC &ICICI term insurance…………………………….81-82
7.2 Other Competitors of HDFC Life Insurance……………………………….83
a. LIC ……………………………………………………………………….83
b.Birla Sunlife Insurance……………………………………………………84
c.Bajaj Allianz………………………………………………………………85
d.TATA AIG……………………………………………………………….85-86
e.ING Vyasa…………………………………………………………………86
8. DATA ANALYSIS AND I NTERPRETATION-CHAPTER 8
8.1 Graphs and Analysis…………………………………………………………88-97
9. CONCLUSION AND RECOMMENDATIONS-CHAPTER-9
9.1 Conclusions and Recommendations………………………………………...99-100
10.SUPPLEMENTARY PAGES
10.1 Questionaire…………………………………………………………………101-103
10.2 Bibliography………………………………………………………………...104
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THE INSURANCE INDUSTRYIN INDIA
With the largest number of life insurance policies in force in the world, Insurance happens to be
a mega opportunity in India. It’s a business growing at the rate of 32-34 per cent annually and
presently is of the order of $41 billion (for the financial year 2009-2010). Together with banking
services, it adds about 7% to the country’s Gross Domestic Product (GDP).
Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part of
our population is also subject to weak social security and pension systems with hardly any old
age income security. This in itself is an indicator that growth potential for the insurance sector in
India is immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and strengthens the risk taking ability of
individuals. It is estimated that over the next ten years India would require investments of the
order of one trillion US dollars. The Insurance sector, to some extent, can enable investments in
infrastructure development to sustain the economic growth of the country.(Source:
www.indiacore.com)
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HISTORICALPERSPECTIVE
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non - Indian lives, as Indian lives were considered more risky to cover. The
Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to
charge the same premium for both Indian and non-Indian lives.
The Oriental Assurance Company was established in 1880. The General insurance business in
India, on the other hand, can trace its roots to Triton Insurance Company Limited, the first
general insurance company established in the year 1850 in Calcutta by the British. Till the end of
the nineteenth century insurance business was almost entirely in the hands of overseas
companies.
Insurance regulation formally began in India with the passing of the Life Insurance Companies
Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's
sullied insurance business in India. By 1938 there were 176 insurance companies.
The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over the insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC)
was born. Nationalization was justified on the grounds that it would create the much needed
funds for rapid industrialization. This was in conformity with the Government's chosen path of
State led planning and development.
The non-life insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general insurance
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industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped
into four companies- National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC).
KEY MILESTONES
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956-
with a capital contribution of Rs. 5 crore from the Government of India.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations.
The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
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for issue and renewal of licenses to agents. The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.
PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
Indian insurance sector is likely to register unprecedented growth of 200% and attain a size of
Rs. 2000 billion by 2009-10, in which a private sector insurance business will achieve a growth
rate of 140% as a result of aggressive marketing technique being adopted by them against 35-
40% growth rate of state owned insurance companies.
The aforesaid findings are made by The Associated Chambers of Commerce and Industry of
India (ASSOCHAM) on `Insurance in Next 2 Years’, saying that in the last couple of years, the
insurance sector has grown by CAGR of around 175% and the trend will emerge still better
because of potential factor. Currently, the insurance sector size is estimated at Rs.500 billion.
On account of intense marketing strategies adopted by private insurance players, the market
share of state owned insurance companies like GIC, LIC and others have come down to 70% in
last 4-5 years from over 97%.
The private insurance players despite the sector is still regulated has been offering rate of return
(RoR) to its policy holders which is estimated at about 35% as against 20% of domestic
insurance companies. This factor is mainly responsible for hike in private insurance market share
which will grow further which is why the ASSOCHAM estimates that its growth rate could even
exceed 140%.
Secondly, the state owned insurance companies such as LIC and GIC have limited number of
policies to offer to their subscribers while in case of private insurance companies, their policy
numbers are many more and the premium amount as well as the maturity period is much
competitive as against those of government insurance companies. Interestingly, the private sector
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insurance players have started exploring the rural markets in which until recently, the state
owned companies had the monopoly.
The Chamber has projected that in rural markets, the share of private insurance players would
increase substantially as these have been able to generate a faith among their rural consumers.
Estimating the potential of the Indian insurance market from the perspective of macro-economic
variables such as the ratio of premium to GDP, ASSOCHAM reveals that India’s life insurance
premium, as a percentage of GDP is 1.8% against 5.2% in the US, 6.5% in the UK or 8% in
South Korea. ASSOCHAM findings further reveal that in the coming years, the corporate
segment, as a whole will not be a big growth area for insurance companies. This is because
penetration is already good and companies receive good services. In both volumes and
profitability therefore, the scope for expansion is modest. The Chamber has suggested that
insurer’s strategy should be to stimulate demand in areas that are currently not served at all.
Insurance companies mostly focus on manufacturing sector, however, the services sector is
taking a large and growing share of India’s GDP. This offers immense opportunities for
expansion opportunities.
To understand the prospects for insurance companies in rural India, it is very important to
understand the requirements of India's villagers, their daily lives, their peculiar needs and their
occupational structures. There are farmers, craftsmen, milkmen, weavers, casual labourers,
construction workers and shopkeepers and so on. More often than not, they are into more than
one profession.
The rural market offers tremendous growth opportunities for insurance companies and insurers
should develop viable and cost-effective distribution channels; build consumer awareness and
confidence. The ASSOCHAM found that there are a total 124 million rural households. Nearly
20% of all farmers in rural India own a Kissan Credit cards. The 25 million credit cards used till
date offer a huge data base and opportunity for insurance companies. An extensive rural agent
network for sale of insurance products could be established. The agent can play a major role in
creating awareness, motivating purchase and rendering insurance services.
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There should be nothing to stop insurance companies from trying to pursue their own unique
policies and target whatever needs that they want to target in rural India. ASSOCHAM suggests
that insurance needs to be packaged in such a form that it appears as an acceptable investment to
the rural people.
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INTRODUCTION
A Research Design is the framework or plan for a study which is used as a guide in collecting
and analyzing the data collected. It is the blue print that is followed in completing the study. The
basic objective of research cannot be attained without a proper research design. It specifies the
methods and procedures for acquiring the information needed to conduct the research effectively.
It is the overall operational pattern of the project that stipulates what information needs to be
collected, from which sources and by what methods.
TITLE OF THE STUDY
“To do theorganization study of HDFC Standard Life Insurance, detailed analysis of all the
products of HDFC Standard Life, do the comparative anaylsis of HDFC Standard Life
Insurance’s term product with the term insurance with ICICI Prudential Life Insurance.”
STATEMENT OF THE PROBLEM
This study was undertaken to understand what are the expectations of the customers from any
term insurance and how HDFC Standard Life Insurance can improves its sales by understanding
customers view. A survey was undertaken to understand the preferences of Indian consumers
with respect to insurance. While marketing policies the sole duty of an advisor/ agent is to
provide insurance plans as per customer requirements.
In effect plans (insurance products) should be flexible to suit individual requirements. This
research tries to analyze some key factors which influence the purchase of insurance like the
term of the policy, the type of company, the amount of annual premium payable (capacity and
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willingness to spend), risk taking ability and the influence of advertising. Solutions and
recommendations are made based on qualitative and quantitative analysis of the data.
OBJECTIVES OF THE STUDY
o Organization study of HDFC Standard Life Insurance
o To analysis the product details of HDFC Standard life Insurance Company
limited.
o To do the comparative analysis of HDFC term insurance products with ICICI
prudential Life Insurance.
o To find out factors that influence customers to purchase insurance policies and
give suggestions for further improvement.
RESEARCH METHODOLOGY
TYPE OF DATA COLLECTED
There are two types of data used. They are primary and secondary data. Primary data is defined
as data that is collected from original sources for a specific purpose. Secondary data is data
collected from indirect sources.
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PRIMARY SOURCES
These include the survey or questionnaire method, telephonic interview as well as the personal
interview methods of data collection.
SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company website,
competitor’s websites etc, newspaper articles etc.
SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to draw
conclusions about that universe. A sample is a representative of the universe selected for study.
SAMPLE SIZE
The sample size for the survey conducted was 50 respondents. This sample size was taken on
95% confidence level and 5 significant level.
SAMPLING TECHNIQUE
Random sampling technique was used in the survey conducted.
PLAN OF ANALYSIS
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Tables were used for the analysis of the collected data. The data is also neatly presented with the
help of statistical tools such as graphs and pie charts. Percentages and averages have also been
used to represent data clearly and effectively.
STUDY AREA
The samples referred to were residing in Bangalore City.
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COMPANY PROFILE
OF
HDFC STANDARD LIFE
INSURANCE COMPANY
LTD.
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HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
INTRODUCTION
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as
the largest residential mortgage finance institution in the country. The corporation has had a
series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the
year ending March 31, 2011 stood at Rs. 2,856 Croresand.The company has covered over
8,77,000 lives year ending March 31, 2011.
HDFC operates through almost 568 locations throughout the country with its corporate head
quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service
associates in Kuwait, Oman and Qatar. HDFC is the largest housing company in India for the last
34 years.
SNAPSHOT-I
Incorporated in 1977 as the first specialized Mortgage Company in India.
Almost 90% of initial shareholding in the hands of domestic institutes and retail
investors. Current 77% of shares held by foreign institutional investors.
Besides the core business of mortgage HDFC has evolved into a financial conglomerate
with holdings In:
HDFC Standard Life insurance Company- HDFC holds 78.07 %.
HDFC Asset Management Company – HDFC holds 50.1%
HDFC Bank- HDFC holds 22.25%.
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Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.
HDFC Chubb General Insurance Company – HDFC holds 74%.
KEY PLAYERS
Mr. Deepak S Parekhis the Chairman of the Company. He is also the Executive Chairman of
Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited
in a senior management position in 1978. He was inducted as a whole-time director of HDFC
Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive
Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants
(England & Wales).
Mr. Deepak M Satwalekaris the Managing Director and CEO of the Company since
November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr.
Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology,
Bombay and a Masters Degree in Business Administration from The American University,
Washington DC.
Board of Directors:
Mr. Deepak S. Parekh (Chairman)
Directors:
Mr. Keki M. Mistry
Ms. Renu S. Karnad
Mr. David Nish
Mr. Nathan Parnaby
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Mr. Norman K. Skeoch
Mr. Gautam R. Divan
Mr. Ranjan Pant
Mr. Ravi Narain
Mr. A.K.T. Chari
Mr. Gerald E. Grimstone
Mr. Michael G. Connarty
Mr. Amitabh Chaudhry
Mr. PareshParasnis
Management Team:
Managing Director and Chief Executive Officer
Mr. Amitabh Chaudhry
Executive Director and Chief Operating Officer
Mr. PareshParasnis
Chief Financial Officer
Ms. VibhaPadalkar
Chief Actuary and Appointed Actuary
Mr. Ashley Rebello
General Manager, Sales and Marketing
Mr. Vikram Mehta
Chief Investment Officer
Mr. PrasunGajri
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GROUP COMPANIES
HDFC Bank: World Class Indian Bank- among the top private banks in India.
HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.
Intelenet Global: BPO services for international customers.
CIBIL: Credit Information Bureau India Limited.
HDFC Chubb: Upcoming Private companies in the field of General Insurance.
HDFC Mutual Fund
HDFC reality.com: Helps to search properties in all major cities in India
HDFC securities
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STANDARD LIFE
Standard Life is Europe’s largest mutual life assurance company. Standard Life, which has been
in the life insurance business for the past 175 years is a modern company surviving quite a few
changes since selling its first policy in 1825. The company expanded in the 19th
century from kits
original Edinburgh premises, opening offices in other towns and acquitting other similar
businesses.
Standard Life Currently has assets exceeding over £ 70 billion under its management and has the
distinction of being accorded “AAA” rating consequently for the six years by Standard and Poor.
SNAPSHOT
Founded in 1875, company supporting generation for last 179 years.
Currently over 5 million Policy holders benefiting from the services offered.
Europe’s largest mutual life insurer.
“This above information is Just a part of the Project”
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